Business News

Advertising jobs in a restaurant seems to attract workers to Oceanside, California, USA, May 10, 2021. REUTERS / Mike Blake

WASHINGTON, March 2 – Private employers in the United States hired more workers than expected in February, and data for the previous month were revised sharply higher to show strong job gains instead of losses, in line with other reports. who paint an optimistic picture of the labor market.

The national ADP employment report on Wednesday suggests that the economy is on a solid footing as the winter wave of COVID-19 infections caused by the Omicron variant subsides. But some economists have expressed concerns about the report’s credibility due to the sharp upward revision of January data.

Private wages rose 475,000 last month. Employers added 509,000 jobs in January, instead of laying off 301,000 workers, as originally reported. Economists polled by Reuters predicted that private wages would rise by 388,000 jobs.

“Huge audits undermine ADP’s credibility,” said Michael Pierce, a senior economist at Capital Economics in New York. “Honestly, with a reported decline of 301,000 in January, revised to a profit of 509,000, ADP figures are as much noise as signal.”

However, ADP chief economist Nela Richardson said the audits were part of the process, drawing parallels with the Labor Department’s Bureau of Labor Statistics, which compiles the closely monitored monthly employment report.

“If you look at the last three months, like November, December (data), the BLS has also significantly revised their numbers in 2021,” Richardson said. “I think the important thing to remember is the general trend. Both NER and BLS show more than 6 million jobs created in 2021. “

The ADP report was developed in conjunction with Moody’s Analytics and was published before the more comprehensive and closely monitored BLS employment report for February on Friday. He has poor records predicting the number of private salaries in the BLS employment report due to differences in methodology.

While the ADP’s initial estimate showed that private wages fell for the first time in a year in January, the BLS reported that the private sector had hired 444,000 workers, with major upward revisions to increase employment in November and December.

RELIABLE PREDICTOR

“The ADP report is not always a reliable predictor of BLS data, but it suggests that our expectations for Friday are quite reasonable,” said Daniel Silver, an economist at JPMorgan in New York.

According to the ADP report, large companies accounted for almost all profits in February, with small business employment down 96,000. Businesses continue to report difficulties in finding workers. At the end of December, there were almost a record 10.9 million vacancies.

Tightening labor market conditions are leading to higher inflationary pressures. Federal Reserve Chairman Jerome Powell told lawmakers on Wednesday that the US Federal Reserve would continue with plans to raise interest rates this month, but Russia’s war against Ukraine has made prospects “very uncertain”. Read more

Economists expect up to seven interest rate hikes this year. Shares of Wall Street traded higher. The dollar rose against a basket of currencies. US government bond prices have fallen.

“We expect small effects on the US labor market, but there are high risks of deterioration in the coming months,” said Gus Focher, chief economist at PNC Financial in Pittsburgh, Pennsylvania. “These include a recession in Europe, even higher inflation due to rising energy prices and the growing likelihood that the Fed will be forced to raise interest rates so aggressively to fight inflation that the recovery is stalled.

Indications are that the companies maintained a strong hiring rate in February. Data from Homebase, a payroll planning and tracking company, showed a significant increase in the number of employees and the number of hours worked in mid-February.

According to the UKG workforce activity report, shift work in February recorded its biggest monthly gain since the spring of 2020. The workforce management software company said the jump meant that the impact of COVID’s Omicron option 19 on the hourly shift is over.

This is in line with expectations for another month of solid profits in February. According to a study by Reuters economists, wages in the non-agricultural sector are likely to have increased by 400,000 jobs after rising by 467,000 in January. Private wages are projected to increase by 378,000 in February.

Report by Lucia Muticani; Edited by Chizu Nomiyama and Andrea Ritchie

Our standards: ‘ principles of trust.

Polestar, the Swedish manufacturer of electric cars, has announced a new roadster concept called the Polestar O2. The hardtop convertible, which debuted in Los Angeles today, is designed to showcase the automaker’s connected aluminum platform, which it produces domestically, as well as some more bizarre innovations such as an integrated drone for aerial photography.

This is the second concept of the company, which is a joint venture between Volvo and the Chinese parent company of the car manufacturer Geely. And this is a tribute to the company’s roots as a productive selection of Volvo, which has since been redesigned as an EV-only brand.

At first glance, the Polestar O2 seems to be extremely fun to drive. We haven’t seen an electric two-seater sports car introduced after the Tesla Roadster – and even Elon Musk’s next-generation version of his company’s first production car has been postponed until 2023. Most major sports car makers like Lamborghini and Ferrari are still working. on its first electric models, leaving Polestar with its dynamic-looking concept.

As this is just a concept, the company does not release any of the specifications of the Polestar O2, such as time 0-60, battery capacity and range. But in an interview, Polestar CEO Thomas Ingenlatt said the modularity of its connected aluminum platform allows for a bigger battery even within a shortened wheelbase.

“Over 110 kilowatt hours of battery power, we can still pack without any compromise in this short wheelbase,” said Ingenlat.

O2 shares many design features with Polestar’s first concept, the Polestar Precept, including sharp-looking lines and a light signature that reflects Volvo’s Volvo origins. The body of the car is low and wide, with an aggressive stance and compact orientation of the cabin. Polestar calls it the “classic proportions of a sports car” with a more modern electric feel – and it’s hard to argue with that.

“We wanted to make sure that people understood that architecture was capable of serving sports cars like this,” Ingenlat said. “The high-torque, high-power P10 engine we developed for the Precept will find a home in all our products in the highest-performance version … And of course, it can be packed in the roadster here.”

O2 is also an opportunity to demonstrate the environmental qualities of Polestar. The interior is made of a new thermoplastic mono-material, which describes the use of a single basic material for the production of various components. In this case, recycled polyester is used as the sole material for all soft interior components, such as seat foam, glue, 3D braided fibers and non-woven laminate. Polestar says this simplifies recycling and is a step towards “greater circulation” while reducing weight and waste.

“This is an idea we would definitely like to put into production,” Ingenlat said of the use of monomaterial in the interior. “This is how we really use these concept cars to fulfill this ambition and inject energy into the organization to really strive to make it possible.”

And the vehicle’s chassis is designed to make recycling easier. Different grades of aluminum are labeled, which allows them to be recycled more efficiently and retain their properties.

Network view

The most distinctive feature of the Polestar O2 is the inclusion of a “cinematic drone” so that owners can take pictures while driving on a crooked mountain road, for example. The drone – which is also a concept – was developed in collaboration with the consumer electronics brand of Aerofugia Hoco Flow. (Aerofugia is the company founded after Geely acquired the Boston-based vertical takeoff and landing company Terrafugia.) It is designed to be used while the car is moving to record driving sequences.

Ingenlat described the perception of European sports cars, driving on this winding mountain road can be “very old-fashioned” and out of touch with today’s concept of shared experiences.

“We challenged our team and said, ‘Look, guys, how would a modern guy respond to this?’ He said. “The drone is definitely the vehicle for creating memories, for shared moments, for capturing this experience that you have, together with your partner in the car, and the drone can take pictures of you. It can take really exciting dynamic photos of the car or be very relaxed.

Ingenlat said the technology that would integrate the drone into the vehicle was “very feasible”, with the drone following the car at speeds of up to 100 km / h. After shooting, the drone can return to the car autonomously. And videos can be edited and shared directly from the 15-inch central display when the car is parked. Ingenlatt described it as less distracting to the driver than trying to take pictures with your smartphone.

Polestar is already committed to turning its first concept, the Precept, into a production car, the Polestar 5. Could the same happen to the Polestar O2? “Opportunity? Definitely, “Ingenlat said. “I am trying very hard to provoke this issue. I want to make this offer with this car and I will be happy to confirm it in the future. “

Sign in front of the offices of JP Morgan Chase & Co. seen in New York, USA, March 29, 2021. REUTERS / Brendan McDermid

LONDON, March 2 – Sanctions imposed on Russia have significantly increased the country’s chances of failing to repay its debt in dollars and other international markets, analysts at JPMorgan and others warned on Wednesday.

Russia has over $ 700 million in government bond payments this month. Although in theory there are sufficient reserves to cover the debt, in practice the freezing of some assets and other measures may affect its ability to make payments. Read more

“Sanctioning Russian government structures in the United States, countermeasures in Russia to restrict payments abroad and disrupting payment chains are major obstacles for Russia to make payments on bonds abroad,” JPMorgan said in a note to customers.

“Sanctions … have significantly increased the likelihood of the Russian government’s defaulting on hard currency.

The central bank and the finance ministry did not respond to a Reuters request for comment on the possibility of default.

The first date of the crisis, analysts at JP Morgan said, was March 16, when two bond coupons were paid, although as much of Russia’s debt they have built-in 30-day “grace periods” that would repel any formal moment. default April 15.

Russia has just under $ 40 billion in debt on the international market or “hard currency,” as it is known. Although this is a small amount for an economy important to Russia, any missed payment will trigger a chain of events.

Major credit rating agencies such as S&P Global, Moody’s and Fitch, which had investment grade ratings for Russia until last week, will downgrade it en masse.

JPMorgan estimates that about $ 6 billion in credit default swaps (CDS) that bondholders have purchased as insurance policies will also have to be repaid, although the process could be complicated in the event of further sanctions. long.

Concerns about the failure followed a warning from the Institute of International Finance (IIF) this week, which indicated that approximately half of Russia’s $ 640 billion in foreign exchange reserves had been effectively frozen by international sanctions. Read more

Capital Economics also warned on Wednesday of growing risks of default. It says it will hit mostly international investors – foreigners held $ 20 billion in Russian government debt denominated in dollars and rubles late last year, according to Russia’s central bank – although that would further damage Moscow’s reputation. international markets.

“The likelihood that the government and companies are unable or unwilling to repay foreign debt has increased significantly,” Jackson said.

Report by Mark Jones Edited by Karin Strohecker and Mark Potter

Our standards: ‘ principles of trust.

Large energy consumers are boycotting Russian oil following Moscow’s invasion of Ukraine in actions that helped raise oil prices above $ 113 a barrel on Wednesday.

OPEC’s continued opposition to calls for increased oil production has added to the pressure to raise prices, after the group said it was sticking to a plan agreed last year to gradually reverse pandemic cuts.

Demand for Russian oil has plummeted since the attack on Ukraine began as refineries, banks and shipowners avoid the country’s vast commodity market. The consulting company Energy Aspects said that 70% of Russian oil is “working hard to find buyers.”

Energy markets have been largely spared sanctions by the United States, the European Union and the United Kingdom against Russia’s financial sector, but typical buyers are effectively self-sanctioning themselves by starting a race to secure alternative supplies in an already tight market.

“Most European large companies do not touch Russian oil and only a few European refineries and trading companies are still on the market, but high freight rates and military insurance premiums significantly complicate transactions,” Energy Aspects said. “Several shipowners are reportedly reluctant to make reservations from the Baltic or the Black Sea due to a lack of military insurance.

Despite the suspension of Russian exports, the OPEC + alliance, which includes Russia, has said it will not extend a plan agreed last July to increase monthly production by 400,000 barrels a day. As oil prices have risen since August, reaching an eight-year high, the United States and other major oil consumers have repeatedly called on the cartel to increase production faster to help ease inflation.

The latest rise in prices was caused by “current geopolitical events” and not by changes in market fundamentals, OPEC + said, confirming that it would continue with the current plan in April.

Brent crude, international oil, rose nearly 8 percent to more than $ 113 a barrel on Wednesday.

As a sign that pressure on raw materials is not limited to oil, European natural gas prices rose 50 percent on Wednesday to a record 185 euros per megawatt-hour.

German Economy Minister Robert Habek said on Wednesday that the worst-case scenario “has not yet materialized” and Russia is still sending gas. But he added that the country needs to be prepared and may need to maintain coal-fired power plants as a reserve. Russia supplies about 40 percent of European gas.

Russia is the world’s third-largest oil producer after the United States and Saudi Arabia, and typically exports about 7.5 million barrels a day, as well as other energy products. Europe is the largest home for Russian crude oil, with about 53 percent of it ending up there, according to ING. Asia is another significant buyer, with 39 percent going to the region.

Russia’s leading Urals oil is a staple for refineries in northwestern Europe and the Mediterranean. The buyers are Germany, Italy, the Netherlands, Poland, Finland, Lithuania, Greece, Romania, Turkey and Bulgaria, according to S&P Global Platts, a commodity price reporting agency.

However, a number of European refineries, including Finland’s Nestlé and Preem in Sweden, are abandoning Russian classes and seeking supplies elsewhere. There are also reports of Indian refineries asking traders to supply non-Russian supplies.

The Urals traded at a discount of more than $ 18 a barrel on Wednesday against the physical Brent in northwestern Europe, a record for the post-Soviet era.

“Differences in oil prices reflect a clear reluctance to take Russian oil and there is still a risk of new sanctions that could indirectly or directly affect oil purchases or supplies,” said Shin Kim, head of supply and production analysis. S&P oil.

Michael Tran, an analyst at RBC Capital Markets, said traders face difficulties in obtaining letters of credit – bank documents used on behalf of the buyer that act as a guarantee to pay the seller – to buy Russian oil.

“This is likely to remain the case as potential buyers struggle to secure guarantees from banks,” he said. “Tanker tariffs are [soaring] while consumer countries are struggling to provide physical barrels elsewhere.

The United States and other major energy-intensive countries agreed on Tuesday to release 60 million barrels of oil from their emergency stockpiles to address fears of disruptions to Russian supplies.

However, traders and analysts said the move was far below the levels needed to calm the market. “As a one-off crude oil spill, it is clogged by the sheer magnitude of Russian export disruptions,” said Ehsan Homan, head of MUFG’s emerging markets research.

“Critically depleted market stocks and declining levels of spare capacity in the face of record-breaking unresolved deficits ultimately leave a lever for rebalancing oil markets – destroying demand.

OPEC and its allies, including Russia, are due to meet later Wednesday to discuss production levels. Despite the turmoil in the oil markets, the cartel is expected to stick to its plan to increase production by 400,000 barrels per day in April. Other Russian-oriented goods were also boosted by the conflict in Ukraine, with aluminum trading at a record high on Wednesday and grain prices rising.

Confirming rumors that have been circulating for months, Ford has announced that it is splitting into “two separate but strategically interdependent automotive businesses” called Ford Blue and Ford Model E. While Ford Blue will drive all legacy cars with internal combustion engines. , The Ford Model E is its boost in electric vehicles with products such as the Mustang Mach-E and Ford F-150 Lightning.

Former Tesla and Apple CEO Doug Field will serve as CEO of Ford Model E’s electric cars and digital systems. He was hired by Ford last fall after leaving Tesla in 2018 and working on Project Titan’s autonomous electric vehicle. Apple for several years. Field is responsible for creating products in the Ford Model E, as well as software and embedded systems in both units.

In addition to product development, the new structure will deal with another problem with many EVs with vaporware – it actually sells them to customers. The Model E unit will “create an exciting new shopping, buying and owning experience for future electric vehicle customers, including simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors.”

While Galhotra and Farley told investors that Ford would stick to the North American franchise, the company also plans to get dealers to “choose” a new setup with a redesigned, standardized customer experience and transparent pricing. It also includes something that the shortage of chips has introduced car buyers – without inventory. They did not provide details on how this would affect commissions and other aspects of the dealership, even when Farley said dealers should be “ready to specialize.”

Ford Model E takes a clean slate approach to the design, manufacture and delivery of electric cars with “always-on” connected experiences, in ways that will significantly change Ford’s internal structure and the way things work for your local car dealers . While electric car companies like Tesla still dominate the segment, Ford and other legacy carmakers are still talking about big plans to catch up. On Tuesday, Stellantis showed an image of an electric jeep as it unveiled the Dare Forward 2030 plan to meet electrical and software commitments, and GM said it would invest $ 35 billion by 2025 to build electric and autonomous vehicles.

Company executives described the split as “how we will win as a company” as they implement Ford’s EV boost plans, which were originally unveiled last May. The carmaker decided not to try to separate the new device only for EV as a special acquisition company (SPAC).

Ford President and CEO Jim Farley will also be President of Model E, while Kumar Galhotra, President of Ford, America and International Markets, will be President of Ford Blue.

Photo by Amelia Holovati Krales / The Verge

The carmaker also plans to cut its $ 3 billion in gas costs over the next four years, which Farley and Galhotra have confirmed will include layoffs, although Ford Model E puts high priority on attracting “the best engineering software.” design and UX talent. ” Ford Blue will be subject to reduced “complexity” and “manic cost reductions” as the company invests $ 5 billion in electric vehicles in 2022 alone. over the next four years.

But she added that President Joe Biden did not want to “bring down global oil markets or the global market, or influence the American people more with higher energy and gas prices.”

According to analysts at Commerzbank, Russia’s leading oil, Urals, was trading at a $ 18 a barrel discount on Brent oil on Wednesday as buyers avoided Russian exports. The concession was not so great after the collapse of the Soviet Union, analysts say.

“Differences in oil prices reflect a clear reluctance to take Russian oil and continue to exist [a] the risk of more sanctions that could indirectly or directly affect oil purchases or supplies, ”said Shin Kim of S&P Global Commodity Insights, head of analysis of oil supply and production.

The massive rise in prices comes despite Western efforts to calm markets and risks further fueling already rising global inflation. On Tuesday, the United States and 30 other members of the International Energy Agency approved the release of 60 million barrels of emergency oil stocks, which will cover approximately two weeks of Russian oil supplies.

“The bottom line is that this is not enough to cool the market. It’s a small band-aid solution,” said Michael Tran, managing director of global energy strategy at RBC Capital Markets.

Huge price increases will make fuel more expensive around the world, increasing the cost of travel and commuting. They will also contribute to inflation and could stifle economic growth, complicating global central bank decisions while trying to counter rising prices.

Investors fear that Russia’s energy exports will be limited or halted as a result of the conflict in Ukraine – a key pipeline route, additional Western sanctions that could target the heart of the Russian economy, or Moscow’s retaliation.

“For Russian oil, there is an evaporation of interest rates on purchases,” said analysts at Commerzbank. “The market seems to be increasingly priced when Russian oil supplies are cut off,” they added.

According to Alex Froley, a market analyst at the Independent Commodity Intelligence Services, Russian natural gas continues to flow to Europe. But there is “a lot of uncertainty and concern about how things can change,” he said.

Froley noted that the United Kingdom has banned Russian-owned and controlled ships from its ports, which could disrupt Russian liquefied natural gas supplies, which account for between 3% and 4% of the country’s gas supplies.

“Traders may be worried about whether continental Europe is introducing a similar ban on Russian ships,” he said.

OPEC on the sidelines

The Organization of the Petroleum Exporting Countries and allied producers, including Russia, agreed on Wednesday to stick to their plan to gradually add oil to the market, opposing pressure from developed economies to do more to ease prices.

The Saudi-led group, called OPEC +, said in a statement that it would increase production by 400,000 barrels a day in April, a small fraction of Russia’s 10 million barrels a day of crude oil.

“The current fundamentals of the oil market and the consensus on its prospects point to a well-balanced market and that the current instability is not caused by changes in the market fundamentals, but by current geopolitical developments,” said OPEC +.

Nuclear talks between Iran and the United States could place more Iranian barrels on the market, but that will not ease the situation in the near future.

Get out of Russia

Many of the world’s largest oil companies are leaving Russia or halting new investments in exploration and development projects.

ExxonMobil said on Tuesday that it was abandoning its latest project in the country, Sakhalin-1, which has been declared “one of the largest single international direct investments in Russia”. A subsidiary of Exxon was the operator of the project and the company’s decision to withdraw will end its presence in Russia for more than 25 years.

BP, Shell and Norwegian Equinor said this week that they intend to leave their Russian business in the event of a billion-dollar blow to their balance sheets. French TotalEnergies has stopped new investments.

– Mark Thompson and Julia Horowitz contributed to the report.

The Dow Jones Industrial Average rose 250 points on Wednesday after comments by Fed chief Jerome Powell showed that the Federal Reserve was still ready to raise interest rates despite Russia’s invasion of Ukraine. Government bond yields recovered after two days of sharp losses. Energy stocks traded briskly as oil prices sparked by the Russia-Ukraine conflict briefly rose above $ 112 a barrel.

x

After the end of Tuesday, Dutch Bros (BROS) and Salesforce (CRM) were among the companies reporting their quarterly results. Shares of BROS fell 3% early on Wednesday, while shares of Salesforce jumped nearly 4% in morning trading. Meanwhile, a chain of discounts Dollar tree (DLTR) reported mixed results early Wednesday as shares fell 4% after opening.

Among the leaders of the Dow Jones, Apple (AAPL) increased by 0.7% and Microsoft (MSFT) traded 0.6% on today’s stock market. UnitedHealth (UNH), a Dow Jones stock you should watch, is approaching a new buying point.

Leader of electric vehicles Tesla (TSLA) rose about 1% on Wednesday, looking to recover from a 0.75% drop on Tuesday.

Against the backdrop of a volatile market driven by titles, Commercial metals (CMC), Northern oil and gas (NOG), Palo Alto nets (PANW) and Specialty Ryan (RYAN) are among the best promotions to watch on Wednesday. Keep in mind that the current conditions of the stock market must keep investors in cash and on the sidelines.

Microsoft and Tesla are shares of IBD Leaderboard. Commercial Metals was introduced in the stock column near the buying area this week. Ryan Specialty is the leader of the IPO.

Dow Jones today: head of the Fed Powell, Russian invasion

Following the opening of the market on Wednesday, the Dow Jones Industrial Average traded up 0.8%, while the S&P 500 rose 0.9%. Nasdaq rose 0.65% in morning trading. Among exchange traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) rose 0.5% and the SPDR S&P 500 ETF (SPY) rose 0.6% after opening Wednesday.

Yields on 10-year bonds rose to 1.78% on Wednesday morning. On Tuesday, the yield on 10-year bonds closed at 1.71% after sinking for a second consecutive session. On February 15, 10-year government bond yields peaked at more than 2.06%, their highest level since August 2019. US oil prices, meanwhile, rose more than 7% on Wednesday in response to reluctance among world oil traders to buy Russian oil. West Texas Intermediate crude traded shortly above $ 112 a barrel.

Federal Reserve Chief Jerome Powell will testify before Congress on Wednesday and Thursday at 10 a.m. ET. As inflation rises and the Federal Reserve is so behind the curve, there are concerns on Wall Street that politicians may not feel a small choice not only to continue tightening rapidly, but also to potentially boost interest rates. The head of the Fed Powell can use his testimony to allay this concern.

In comments, Powell said: “We will use our political instruments as appropriate to prevent higher inflation, while promoting sustainable expansion and a strong labor market. We have gradually discontinued our net asset purchases. With inflation well above 2% and a strong labor market, we expect it to be appropriate to raise the target range for federal interest rates at our meeting later this month. “

In Ukraine, Russian forces continued to bomb the country’s second-largest city, Kharkiv, in a bid to demoralize defenders amid an apparent change in military strategy.

ADP, meanwhile, said companies added 475,000 jobs in February, better than Econoday’s estimate of 320,000 new positions. The ADP employment report is calculated monthly as a precursor to non-agricultural wages by the Ministry of Labor. This report is due out on Friday.

Stock market adjustment

The stock market performed weak on Tuesday as major stock indexes sold out at a big loss. Despite the weakness, Wednesday will be Day 5 of the ongoing rally experience, which means that the next day – a signal for the start of a new uptrend – is possible at any time. Against the background of the current instability, it is important to read and follow the IBD’s Big Picture column.

On Tuesday, The Big Picture commented: “With more stocks falling and rising, being a successful stock picker today probably means you’re laser-focused on a handful of sectors that are actually rising. the broad decline. “

If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks to watch now

Dow Jones Profits: Salesforce

Shares of Salesforce rose nearly 4% early Wednesday after the company surpassed quarterly earnings and sales on Wall Street. The earnings guidelines for the enterprise software maker were above expectations, but estimates of its profits were missed.

Shares of CRM closed on Tuesday with more than 30% of its 52-week high. Stocks are well below their 50- and 200-day moving averages.

Dow Jones shares to monitor: UnitedHealth

UnitedHealth is building a double-bottom base that offers a 501.03 purchase point. Shares ended just below their 50-day moving average on Tuesday after rising 0.1%. UNH shares traded 0.5% higher on Wednesday.

The upward line of the relative strength of the shares is just at new highs, which shows a significant superiority in the stock market.

Four stocks with the highest growth to see this yearrent. Stock market adjustment

Watching Shares: Commercial Metals, Northern Oil, Palo Alto, Ryan Specialty

Texas-based Commercial Metals, a manufacturer of metal products for the construction industry, is trying to surpass the buying point of 38.82 in consolidation. The shares are about 3% below the entrance, after the shares exploded briefly on Tuesday. The purchase area of ​​5% increases to 40.76. The CMC availability shows 98 of the perfect 99 IBD Composite Rating, to check the IBD Stock. Shares of CMC rose 2.5% on Wednesday morning.

Northern Oil & Gas is breaking above the point of buying a cup with a handle of 25.57, according to an analysis of the chart of IBD MarketSmith. Shares of NOG rose 3% on Wednesday.

Cybersecurity leader Palo Alto Networks is holding on to a consolidation point of 572.77 after a nearly 3% drop on Tuesday. The buying area of ​​5% reaches 601.41. The RS line reached a new peak on the day of the breakthrough. Last week, the company reported strong profits and sales. Palo Alto shares remained unchanged early Wednesday.

IPO leader Ryan Specialty was trying to surpass the 40.65 buy-in double-bottom handle, but turned sharply lower on Tuesday. Last week, IPO shares found strong support around their 50-day line. Shares of RYAN rose 1% on Wednesday morning.

Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment

Tesla shares

Shares of Tesla rose about 1% on Wednesday morning, trying to recover from losses on Tuesday. Shares resolutely regained their long-term 200-day line during a jump on Monday. Now look for the shares to continue your upward movement on the right side of a new base. The next key test for stocks could be the 50-day line, which is about 10% above its current price. Re-assuming this line would be upward for the stock-based building process, while strong resistance could signal a long-term period of consolidation.

The shares traded up to 1243.49 on November 4, but ended on Tuesday with about 31% of this highest peak of all time.

Leaders of Dow Jones: Apple, Microsoft

Among the shares of Dow Jones, Apple is building a double-bottom base with 176.75 points to buy, according to an analysis of the chart of IBD MarketSmith. The shares are about 7% away from the new point of purchase. Shares of AAPL found support in their long-term 200-day line last week, but remain below their 50-day moving average. Shares of Apple rose 0.7% on Wednesday.

How Dow Jones shares cope with the potential resistance on the 50-day line will be key to the likelihood of a breakout. If stocks find stable stability, then a longer period of consolidation is likely. However, if the shares resolutely regain this level, then the breakthrough may be on the near horizon. So far, Apple shares are about 5% below the 50-day line, so there is some time before a potential test.

The relative strength of the shares remains close to the last peaks in the face of stock market weakness, which means that institutions are hesitant to sell their shares to Apple.

Software leader Microsoft fell 1.3 percent on Tuesday, breaking a three-day winning streak. The leader of software, Dow Jones, is just below the long-term 200-day line as he continues to build a base. Shares of MSFT rose 0.6% on Wednesday.

Don’t forget to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on the growth stocks and the Dow Jones Industrial Average index.

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